May 24 (Reuters) - Ista Pharmaceuticals Inc
pleaded guilty on Friday to charges it used kickbacks and
improper marketing to boost sales of a drug meant to treat eye
pain and agreed to pay $33.5 million to settle criminal and
civil liability, the U.S. Department of Justice said.

The unit of eye care company Bausch & Lomb pleaded guilty to
conspiracy to offer kickbacks to induce physicians to prescribe
Xibrom, a drug meant to treat pain after cataract surgery, and
conspiracy to promote that drug for unapproved uses, including
after Lasik and glaucoma surgeries.

Ista agreed as part of a criminal settlement to a $16.63
million fine and an $1.85 million asset forfeiture. It also
agreed to a $15 million civil settlement to resolve allegations
that its marketing of Xibrom caused false claims to be submitted
to government health care programs.

As part of the settlement, Ista will be barred from
participating in Medicare and Medicaid, and Bausch & Lomb agreed
to strengthen its compliance and ethics procedures.

"The fact that Ista offered doctors illegal inducements -
such as a wine tasting, golf outings, and payments to attend
what were in essence marketing sessions - makes the company's
illegal conduct particularly deserving of the hefty penalty Ista
has agreed to pay," U.S. Attorney William Hochul in Buffalo, New
York said in a statement.
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